Shares of Aditya Birla Lifestyle Brands Ltd. listed on exchanges at 167.75 per share on both NSE and BSE on Monday, June 23, following its demerger from Aditya Birla Retail and Fashion Ltd.
Aditya Birla Lifestyle Brands' portfolio includes lifestyle brands such as Louis Philippe, Van Heusen, Allen Solly, and Peter England. It also features casual wear brands like American Eagle and Forever 21, sportswear under the Reebok brand, and innerwear business under the Van Heusen brand.
Motilal Oswal Securities Ltd. has initiated coverage on Aditya Birla Lifestyle Brands with a 'Neutral' rating and a target price of Rs 190. The brokerage noted that the company's portfolio comprises India's leading fashion brands and emerging brands, aiming for consistent double-digit growth in revenue and Ebitda.
Under the scheme of arrangement, ABFRL has demerged its Madura Fashion & Lifestyle business and transferred it to Aditya Birla Lifestyle Brands.
Shareholders of ABFRL will receive one share of Aditya Birla Lifestyle Brands for every one share they hold in ABFRL, in addition to their existing shareholding in ABFRL.
Assets and liabilities are to be divided between the two companies. As of March 31, 2024, Aditya Birla Fashion and Retail had overall borrowings of Rs 3,000 crore. Approximately Rs 1,000 crore will be transferred to Aditya Birla Lifestyle Brands, while the remaining amount will stay with Aditya Birla Fashion and Retail.
The company plans to raise Rs 2,500 crore in capital within 12 months after the completion of the demerger to strengthen its balance sheet and fund its remaining business.
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